Internal Revenue Code 401 K
Learn about internal revenue code 401 k retirement plans and the tax rules that apply to them.
Internal revenue code 401 k. There are two main types corresponding to the same distinction in an individual retirement account ira. This site is updated continuously and includes editor s notes written by expert staff at bloomberg tax indicating when a section has been repealed or when there is a delayed effective date allowing you to see the current and future law. Qualified pension profit sharing and stock bonus plans on westlaw. Variously referred to as traditional vs.
In the united states a 401 k plan is an employer sponsored defined contribution pension account defined in subsection 401 k of the internal revenue code. A 401 k is a feature of a qualified profit sharing plan that allows employees to contribute a portion of their wages to individual accounts. A profit sharing or stock bonus plan a pre erisa money purchase plan or a rural cooperative plan shall not be considered as not satisfying the requirements of. A rural cooperative plan which includes a qualified cash or deferred arrangement shall not be treated as violating the requirements of section 401 a or of paragraph 2 merely by reason of a hardship distribution or a distribution to a participant after attainment of age 59.
K cash or deferred arrangements. Employee funding comes directly off their paycheck and may be matched by the employer. Internal revenue code section 401 k qualified pension profit sharing and stock bonus plans. A state or political subdivision or its agency or instrumentality.
The underlying plan can be a profit sharing stock bonus pre erisa money purchase pension or a rural cooperative plan. Bloomberg tax offers full text of the current internal revenue code free of charge. Both 408 k and 401 k refer to sections of the internal revenue code that outline employer sponsored retirement plans both provide guidelines that allow employees to set aside a portion of their. For more detailed codes research information including annotations and citations please visit westlaw.
The united states or its agency or instrumentality. Findlaw codes are provided courtesy of thomson reuters westlaw the industry leading online legal research system. Internal revenue code 401. Links to related code sections make it easy to navigate within the irc.